Procedure : 2014/2027(BUD)
Document stages in plenary
Document selected : A7-0260/2014

Texts tabled :

A7-0260/2014

Debates :

Votes :

PV 15/04/2014 - 8.10

Texts adopted :

P7_TA(2014)0350

REPORT     
PDF 196kWORD 89k
2 April 2014
PE 530.051v02-00 A7-0260/2014

on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, in accordance with point 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (application EGF/2012/004 ES/Grupo Santana from Spain)

(COM(2014)0116 – C7-0101/2014 – 2014/2027(BUD))

Committee on Budgets

Rapporteur: Frédéric Daerden

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION
 ANNEX: DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
 EXPLANATORY STATEMENT
 ANNEX: LETTER OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS
 RESULT OF FINAL VOTE IN COMMITTEE

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, in accordance with point 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (application EGF/2012/004 ES/Grupo Santana from Spain)

(COM(2014)0116 – C7-0101/2014 – 2014/2027(BUD))

The European Parliament,

–       having regard to the Commission proposal to the European Parliament and the Council (COM(2014)0116 – C7-0101/2014),

–       having regard to Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund(1) (EGF Regulation),

–       having regard to Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020(2), and in particular Article 12 thereof,

–       having regard to the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management(3) (IIA of 2 December 2013), and in particular point 13 thereof,

–       having regard to trilogue procedure provided for in point 13 of the IIA of 2 December 2013,

–       having regard to the letter of the Committee on Employment and Social Affairs,

–       having regard to the report of the Committee on Budgets (A7-0260/2014),

A.     whereas the European Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market,

B.     whereas the Union’s financial assistance to workers made redundant should be dynamic and made available as quickly and efficiently as possible, in accordance with the Joint Declaration of the European Parliament, the Council and the Commission adopted during the conciliation meeting on 17 July 2008, and having due regard for the IIA of 2 December 2013 in respect of the adoption of decisions to mobilise the EGF,

C.     whereas Spain submitted application EGF/2012/004 ES/Grupo Santana(4) for a financial contribution from the EGF, following 330 redundancies in Grupo Santana and 15 suppliers and downstream producers with 285 workers targeted for EFG co-funded measures, during the reference period from 15 November 2011 to 15 March 2012,

D.     whereas the application fulfils the eligibility criteria set up by the EGF Regulation,

1.      Agrees with the Commission that the conditions set out in Article 2(c) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation;

2.      Notes the explanations of the Commission that the 330 layoffs within the reference period and the additional 689 redundancies are related to the same collective dismissal procedure and that the dismissals combined with very fragile economic and social situation of the region fulfil the condition of exceptionality of the case in line with Article 2(c) of the EGF Regulation;

3.      Notes that the Spanish authorities submitted the application for EGF financial contribution on 16 May 2012 and regrets that its assessment was made available by the European Commission only on 5 March 2014; deplores the lengthy period of evaluation of 22 months and believes that this delay contradicts the aim of the European Globalisation Adjustment Fund to provide a quick aid to workers made redundant;

4.      Considers that the redundancies in Grupo Santana and 15 suppliers and downstream producers are linked to major structural changes in world trade patterns due to globalisation, referring to a reduction of the EU share in world motor vehicle production and the rapid growth in Asian markets which EU producers are less able to benefit from;

5.      Notes that the 330 redundancies in question along with the 689 redundancies due to the same cause before and after the four-month reference period have a significantly negative impact on employment and the economy at local and NUTS III level, and aggravates already fragile economic situation of the affected territory;

6.      Notes that this is yet another EGF application addressing dismissals in the automotive sector and that with 17 applications this sector has been subject to the most numerous EGF applications submitted both in relation to crisis and to globalisation criterion; points out that this another case concerning the automotive industry demonstrates the need for an Union industrial strategy and illustrates how the EGF assists workers in restructuring process;

7.      Welcomes the fact that the region of Andalucia, where the unemployment rate is much higher than the national and Union average, yet again avails itself of the EGF; points to the fact that EGF has already supported workers of Delphi located in Andalucia (EGF/2008/002 ES/Delphi);

8.      Welcomes the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to initiate the implementation of the personalised services to the affected workers on 1 August 2011, ten months before EGF application submission and well ahead of the final decision on granting the EGF support for the proposed coordinated package;

9.      Notes that the coordinated package of personalised services to be co-funded includes measures for the reintegration of 285 redundant workers into employment such as vocational on-the-job training, counselling to business projects, active job search assistance and job matching;

10.    Welcomes the fact that the training offered is of considerable length and that it will be complemented with on-the-job activities; welcomes the fact that the training will be matched to the skills and qualifications needs of the enterprises settling in the business park, which makes part of the measures provided in addition to the EGF funded package;

11.    In this context, welcomes the fact that the city of Linares, heavily affected by the closure of Santana (and of its suppliers) which was the main employer in the municipality, took a global and comprehensive approach reflected in the strategy of rehabilitation of Grupo Santana business park to attract new investors; is of the view that the fact that the city of Linares decided to improve the environment for businesses will boost the effect of the EGF measures targeting workers;

12.    Welcomes the fact that the city of Linares consulted the package with the social partners (trade unions MCA-UGT Andalucía and Federación de la industria de CCOO-Andalucía) and that the social partners are monitoring the implementation of the measures, and that a policy of equality of women and men as well as the principle non-discrimination will be applied during the various stages of the implementation of and in access to the EGF;

13.    Recalls the importance of improving the employability of all workers by means of adapted training and the recognition of skills and competences gained throughout a worker's professional career; expects the training on offer in the coordinated package to be adapted not only to the needs of the dismissed workers but also to the actual business environment;

14.    Points out to the fact that the EGF will provide "training wage" allowances amounting to 150% of the Spanish minimum wage; welcomes however the confirmation of the Commission that those allowances do not substitute for the unemployment benefits and will be provided in addition to the unemployment benefits paid out under the national legislation; stresses in this context that the new EGF regulation for 2014-2020 will limit the inclusion of financial allowances in the package to a maximum of 35% of the cost of the measures and that accordingly the rate of allowances within the coordinated package for this demand will not repeat under this new regulation;

15.    Welcomes the Spanish regional and Linares local authorities initiative to invest in the industrial facilities and promotion of the renewed industrial area in order to attract new companies and to diversify its industrial structure rather than focusing on the automotive sector; underlines that these efforts are not submitted for EGF co-financing and are financed by regional and local budgets under severe constrains after the loss of tax income due to the plant closure;

16.    Notes that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on complementarity with actions funded by the Structural Funds; stresses that the Spanish authorities confirm that the eligible actions do not receive assistance from other Union financial instruments; reiterates its call to the Commission to present a comparative evaluation of those data in its annual reports in order to ensure full respect of the existing regulations and that no duplication of Union-funded services can occur;

17.    Stresses that, in accordance with Article 6 of the EGF Regulation, it shall be ensured that the EGF supports the reintegration of individual redundant workers into stable employment; stresses, furthermore, that EGF assistance can co-finance only active labour market measures which lead to durable, long-term employment; reiterates that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements nor measures restructuring companies or sectors;

18.    Welcomes the agreement reached between the European Parliament and the Council regarding the new EGF Regulation, for the period 2014-2020, to reintroduce the crisis mobilisation criterion, to increase Union financial contribution to 60% of the total estimated cost of proposed measures, to increase efficiency for the treatment of EGF applications in the Commission and by the European Parliament and the Council by shortening time for assessment and approval, to widen eligible actions and beneficiaries by introducing self-employed persons and young people and to finance incentives for setting up own businesses;

19.    Approves the decision annexed to this resolution;

20.    Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

21.    Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

(1)

OJ L 406, 30.12.2006, p. 1.

(2)

OJ L 347, 20.12.2013, p. 884.

(3)

OJ C 373, 20.12.2013, p. 1.

(4)

              Santana Motor S.A.U.; Santana Motor Andalucía S.L.U. and Santana Militar S.L.U.


ANNEX: DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the European Globalisation Adjustment Fund, in accordance with Point 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (application EGF/2012/004 ES/Grupo Santana from Spain)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 establishing the European Globalisation Adjustment Fund(1), and in particular Article 12(3) thereof,

Having regard to Regulation (EU) no 1309/2013 of the European Parliament and the Council of 17 December 2013 on the European Globalisation Fund (2014-2020) and repealing Regulation (EC) no 1927/2006(2), and in particular Article 23, second subparagraph, thereof,

Having regard to Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 (3), and in particular Article 12 thereof,

Having regard to the Interinstitutional Agreement between the European Parliament, the Council and the Commission of 2 December 2013 on budgetary discipline, on cooperation in budgetary matters and on sound financial management(4), and in particular point 13 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1) The European Globalisation Adjustment Fund (EGF) was established to provide additional support for workers made redundant as a result of major structural changes in world trade patterns due to globalisation and to assist them with their reintegration into the labour market.

(2) The EGF shall not exceed a maximum annual amount of EUR 150 million (2011 prices), as laid down in Article 12 of Regulation (EU, Euratom) No 1311/2013.

(3) Spain submitted an application to mobilise the EGF, in respect of redundancies in the enterprise Grupo Santana and 15 suppliers and downstream producers, on 16 May 2012 and supplemented it by additional information up to 28 November 2013. This application complies with the requirements for determining the financial contributions as laid down in Article 10 of Regulation (EC) No 1927/2006. The Commission, therefore, proposes to mobilise an amount of EUR 1 964 407.

(4) Notwithstanding Regulation (EC) No 1927/2006 being repealed, it shall continue to apply for applications submitted up to 31 December 2013 by virtue of Article 23, second subparagraph of Regulation (EU) No 1309/2013.

(5) The EGF should, therefore, be mobilised in order to provide a financial contribution for the application submitted by Spain,

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the European Union for the financial year 2014, the European Globalisation Adjustment Fund (EGF) shall be mobilised to provide the sum of EUR 1 964 407 in commitment and payment appropriations.

Article 2

This Decision shall be published in the Official Journal of the European Union.

Done at Brussels,

For the European Parliament                                         For the Council

The President                                                                   The President

(1)

OJ L 406, 30.12.2006, p. 1.

(2)

OJ L 347, 20.12.2013, p. 855.

(3)

OJ L 347, 20.12.2013, p. 884.

(4)

OJ C 373, 20.12.2013, p. 1.


EXPLANATORY STATEMENT

I. Background

The European Globalisation Adjustment Fund has been created in order to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns.

According to the provisions of Article 12 of Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020(1) and of the Article 12 of Regulation (EC) No 1927/2006(2), the Fund may not exceed a maximum annual amount of EUR 150 million (2011 prices). The appropriate amounts are entered into the general budget of the Union as a provision.

As concerns the procedure, according to point 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management(3), in order to activate the Fund the Commission, in case of a positive assessment of an application, presents to the budgetary authority a proposal for mobilisation of the Fund and, at the same time, a corresponding request for transfer. In the event of disagreement, a trilogue shall be initiated.

II. The Grupo Santana application and the Commission's proposal

On 4 March 2014, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Spain to support the reintegration in the labour market of workers made redundant in Grupo Santana and 15 suppliers and downstream producers due to major structural changes in world trade patterns due to globalisation.

This is the first application to be examined under the 2014 budget and refers to the mobilisation of a total amount of EUR 1 964 407 from the EGF for Spain. It concerns 330 redundancies in the three enterprises constituting the Grupo Santana and 15 suppliers in Linares a town of the NUTS III region of Jaen (ES 616) with 285 workers targeted for EFG co-funded measures during the reference period from 15 November 2011 to 15 March 2012. All of these redundancies were calculated in accordance with the first indent of the second paragraph of Article 2 of Regulation (EC) No 1927/2006.

The application was sent to the Commission 16 May 2012 supplemented by additional information up to 28 November 2013. The Commission has concluded that the application meets the conditions for deploying the EGF as set out in Article 2(c) of Regulation (EC) No 1927/2006.

The Spanish authorities argue that growth in automobile manufacturing in the EU lags well behind that of its major competitors, thus leading to a loss of EU market share in the sector. Globally, car production increased by 22,4 % in 2010, after a 9,6 % downturn in 2009(4)

. China, at 13,9 million units produced, saw its output grow four times higher than production growth in Europe, expanding by 33,8 % compared to 8,3 % growth in Europe in 2010. They further refer to motor vehicle production statistics(5) to demonstrate a decrease of the EU market share. In 2001, the EU-27 market share in the world production of motor vehicles still was 33,7 %. In 2004 it decreased to 28,4 % and further decreased to 26,3 % in 2010. During the period 2004-2010, the production of passenger cars, in absolute terms, increased by 6,7 % in the EU-27, against a growth rate of 32,2 % worldwide.

The Spanish authorities state that NUTS III region Jaen where Grupo Santana is located is in a very difficult situation. The gross regional product (GDP) per capita of Jaen is 69,8% of EU average. The employment rate of people aged 16-64 in Jaen decreased from 56,1 % in 2007 to 48,8 % in 2011 when the number of employed people fell from 235 767 to 209 047. During the same period the unemployment rate rose from 13 % to 27,9 % (from 21,13 % to 48,6 % for those under 25 years) and the absolute number of unemployed workers increased from 35 567 to 81 153.

The co-ordinated package of personalised services to be co-funded includes measures for the reintegration of 285 workers into employment such as vocational on-the-job training, counselling to business projects, active job search assistance and job matching.

According to the Spanish authorities, the measures initiated on 1 August 2011 combine to form a co-ordinated package of personalised services and represent active labour market measures with the aim of re-integrating the workers into the labour market.

As regards the criteria contained in Article 6 of Regulation (EC) No 1927/2006, the Spanish authorities in their application:

•  confirmed that the financial contribution from the EGF does not replace measures which are the responsibility of companies by virtue of national law or collective agreements;

•  demonstrated that the actions provide support for individual workers and are not to be used for restructuring companies or sectors;

•  confirmed that the eligible actions referred to above do not receive assistance from other EU financial instruments.

Concerning management and control systems, Spain has notified the Commission that the financial contribution will be managed and controlled by the same bodies that manage and control the ESF. The Servicio Andaluz de Empleo will be the intermediate body for the managing authority.

III. Procedure

In order to mobilise the Fund, the Commission has submitted to the Budget Authority a transfer request for a global amount of EUR 1 964 407 from the EGF reserve (40 02 43) to the EGF budget line (04 04 51).

This is the third transfer proposal for the mobilisation of the Fund transmitted to the Budgetary Authority to date during 2014. The proposed amount of financial contribution will leave more than 25 % of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year, as required by Article 12(6) of Regulation (EC) No 1927/2006.

The trilogue on the Commission's proposal for a Decision on the mobilisation of the EGF could take a simplified form, as provided for in Article 12(5) of the legal base, unless there is no agreement between the Parliament and the Council.

According to an internal agreement, the Employment and Social Affairs Committee should be associated to the process, in order to provide constructive support and contribution to the assessment of the applications from the Fund.

(1)

             OJ L 347, 20.12.2013, p. 884.

(2)

           OJ L 406, 30.12.2006, p. 1.

(3)

            OJ C 373, 20.12.2013, p. 1.

(4)

            European Automobile Manufacturers' Association – ACEA(http://www.acea.be/news/news_detail/vehicle_production_on_recovery_path_in_2010/)

(5)

            Organisation Internationale des Constructeurs d’Automobiles – OICA (www.oica.net)


ANNEX: LETTER OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS

EK/nt

D(2014)14577

M. Alain Lamassoure

President of the Committee on budgets

ASP 13E158

Subject: Opinion on the mobilisation of the European Globalisation Adjustment Fund (EGF) for the case EGF/2012/004 ES/Santana from Spain (COM(2014)116 final)

Dear Chair,

The Committee on Employment and Social Affairs (EMPL) as well as its Working Group on the EGF examined the mobilisation of the EGF for the case EGF/2012/004 ES/Santana from Spain and adopted the following opinion.

The EMPL committee and the Working Group on the EGF are in favour of the mobilisation of the Fund concerning this request. In this respect, the EMPL committee presents some remarks without, however, putting into question the transfer of the payments.

The deliberations of the EMPL committee are based on the following considerations:

A)  Whereas this application is based on Article 2 (c) of the EGF regulation and targets for support 285 workers of the total of 1 019 workers dismissed within and before and after the reference period between 15 November 2011 and 15 March 2012 in the enterprise Grupo Santana and its 15 suppliers;

B)  Whereas the Spanish authorities seek to derogate from the threshold of 500 redundancies over four months as laid down in Article 2 (a); whereas the Spanish authorities claim that the dismissals were gradually phased to reduce its impact on the territory and therefore the 500 redundancies threshold could not be reached with the reference period;

C)  Whereas the Spanish authorities argue that the redundancies were caused by major structural changes in world trade patterns due to globalisation, which continues to affect the European automotive sector;

D)  Whereas in result of globalisation, the European automotive industry is losing share in the world market for passenger cars mainly due to increased production in China, Japan, South Korea and the BRIC countries; whereas the EU-27 market share in the world production of motor vehicles decreased from 33,7% in 2001 to 26,3% in 2010; whereas between 2004-2010, the EU production increased only by 6,7% compared to a growth rate of 32,2% worldwide;

E)  Whereas the Spanish authorities claim that the closure of Grupo Santana was caused by the combination of a drop in demand for their own products with the change in the strategies of its main clients;

F)  Whereas 82,10 % of the workers targeted by the measures are men and 17,19 % are women; whereas 92,99 % of the workers are between 24 and 54 years old;

G)  Whereas the data on the occupational structure of the dismissed labour could not have been obtained due to the fact that the concerned enterprises no longer exist;

Therefore, the Committee on Employment and Social Affairs calls on the Committee on Budgets, as the committee responsible, to integrate the following suggestions in its motion for a resolution concerning the Spanish application:

1.  Agrees with the Commission that the conditions set out in Article 2 (c) of the EGF regulation (1927/2006) are met and that, therefore, Spain is entitled to a financial contribution under this regulation;

2.  Notes the explanations of the Commission that the 330 layoffs within the reference period and the additional 689 redundancies are related to the same collective dismissal procedure and that the dismissals combined with very fragile economic and social situation of the region fulfil the condition of exceptionality of the case in line with Article 2 (c);

3.  Notes that the Spanish authorities submitted the application for EGF financial contribution on 16 May 2012 and regrets that its assessment was made available by the European Commission only on 5 March 2014; deplores the lengthy period of evaluation of 22 months and believes that this delay contradicts the aim of the European Globalisation Adjustment Fund to provide a quick aid to workers made redundant;

4.  Notes that this is yet another EGF application addressing dismissals in the automotive sector and that with 17 applications this sector has been subject to the most numerous EGF applications submitted both in relation to crisis and to globalisation criterion; points out that this another case concerning the automotive industry demonstrates the need for an EU industrial strategy and illustrates how the EGF assists workers in restructuring process;

5.  Welcomes the fact that the region of Andalucia, where the unemployment rate is much higher than the national and EU average, yet again avails itself of the EGF; points to the fact that EGF has already supported workers of Delphi located in Andalucia (EGF/2008/002 ES/Delphi);

6. Welcomes the fact that the Spanish Authorities aimed to help to the dismissed workers quickly and that the implementation of the coordinated package of personalised services started on 1 August 2011 - well ahead of the finalisation of the assessment by the Commission and ahead of the decision of the Budgetary Authority to grant the EGF support;

7. Welcomes the fact that the training offered is of considerable length and that it will be complemented with on-the-job activities; welcomes the fact that the training will be matched to the skills and qualifications needs of the enterprises settling in the business park, which makes part of the measures provided in addition to the EGF funded package;

8. In this context, welcomes the fact that the city of Linares, heavily affected by the closure of Santana (and of its suppliers) which was the main employer in the municipality, took a global and comprehensive approach reflected in the strategy of rehabilitation of Grupo Santana business park to attract new investors; is of the view that the fact that the city of Linares decided to improve the environment for businesses will boost the effect of the EGF measures targeting workers;

9.  Notes that two third of the EGF support will be spent on financial allowances called “training wage” - all workers are said to receive allowance which is estimated at EUR 8 897 per worker;

10.  Points out to the fact that the EGF will provide "training wage" allowances amounting to 150% of the Spanish minimum wage; welcomes however the confirmation of the Commission that those allowances do not substitute for the unemployment benefits and will be provided in addition to the unemployment benefits paid out under the national legislation; stresses in this context that the new EGF regulation for 2014-2020 will limit the inclusion of financial allowances in the package to a maximum of 35% of the cost of the measures and that accordingly the rate of allowances within the coordinated package for this demand will not repeat under this new regulation;

11. Welcomes the fact that the city of Linares consulted the package with the social partners and that the social partners are monitoring the implementation of the measures;

Yours sincerely,

Pervenche Berès


RESULT OF FINAL VOTE IN COMMITTEE

Date adopted

31.3.2014

 

 

 

Result of final vote

+:

–:

0:

21

1

0

Members present for the final vote

Marta Andreasen, Zuzana Brzobohatá, Jean Louis Cottigny, Göran Färm, Věra Flasarová, Salvador Garriga Polledo, Jens Geier, Ivars Godmanis, Ingeborg Gräßle, Jutta Haug, Monika Hohlmeier, Sidonia Elżbieta Jędrzejewska, Anne E. Jensen, Ivailo Kalfin, Jan Kozłowski, Jan Mulder, Juan Andrés Naranjo Escobar, Andrej Plenković, László Surján, Helga Trüpel, Angelika Werthmann

Substitute(s) present for the final vote

Paul Rübig

Last updated: 3 April 2014Legal notice